Terra Classic’s native token, LUNC, experiences an extraordinary surge, witnessing a 45% increase from $0.000064 to nearly eliminating one zero from its price. The catalyst behind this surge is the recent approval of a crucial proposal related to USTC minting.
98.95% Vote for USTC Minting Proposal
The surge in LUNC’s price is not a mere coincidence but a result of a pivotal proposal surrounding USTC minting
The LUNC community, with an overwhelming majority, has endorsed a proposal to halt USTC “minting and reminting” by implementing a 100% Tobin tax. Impressively, 98.95% of the community voted in favor of this groundbreaking proposal.
What’s in the Proposal?
The Terra Classic Commonwealth portal shared some details about the proposal, as they explained that USTC only goes into circulation through the market module.
Meanwhile, the proposal aimed to disable USTC minting by introducing a Tobin tax of 100% for swaps to USTC.
To meet the proposal’s goal of disabling USTC minting, the Layer One Task Force (LITF) team stepped up. They made a code change, introducing a new governance parameter. This parameter now lets them set a Tobin tax for swaps to USTC, simplifying the process.
Interestingly, there was talk within the community about making things even simpler. They discussed raising all Tobin taxes for all stablecoins to 100%, skipping the need for a code change.
In the end, the proposal succeeded in its mission, making all market swapping and coin minting on Terra Classic inactive and putting a stop to new USTC circulation
The approval of the proposal has not only led to a surge in LUNC’s trading volume, growing from an average of $30 million to over $333 million but has also contributed to a significant 45% cumulative 30-day performance increase for LUNC.
Terra to Burn 800M USTC
The Terra community is abuzz with another ongoing proposal to burn 800 million USTC tokens, as per a Coinpedia report. However, this proposal involves blacklisting and freezing a specific wallet containing these tokens. The vote on this plan was close, with 54.07% of people supporting it and 30.51% against it
Terra Luna Classic, having recently burned an impressive 76 billion LUNC tokens, has gained support from Binance, a major contributor to this initiative.
The community’s collective dedication to expediting token burn rates is reflected in Binance’s recent single-batch burn of over 1 billion LUNC tokens, showcasing the collaboration between crypto exchanges, validators, and community members.